Alan’s Forex Blog

General Market Comments The Dollar continues to get hammered as we edge closer to the next FOMC announcement. We do expect them to cut by at least .50 and .75 or even 1.00 is not out of the question. The .50 cut is already priced into the dollar but more than that and we will likely see another leg down in the Dollar. On the flip side though, after this next cut the FOMC will have little room left to cut. So we could finally begin to see the Dollar stabilize on the back of this next FOMC

General Market Comments Last week we saw an extreme move in the Dollar breaking down below support and making both recent and all time lows against many currencies. We did not expect the extreme nature of this move and believe that at least ¼ of last weeks move is overdone in the near term. We are expecting a dead cat bounce out of the dollar this week and we may even look back at this as a head fake rather than a breakout. We continue to advocate the use of options for those picking tops or